Petty Cash

Many companies make petty cash available for small, miscellaneous day-to-day expenses. A cheque is made payable to petty cash and is written up as a miscellaneous expense in the synoptic ledger. The money from the cheque is placed in a cash box, and cash is withdrawn as needed for items such as postage or coffee.

Always get a receipt when you use petty cash. If this is not possible, place a note stating what the money was used for in the cash box with other receipts. Cash and receipts in the cash box should always total the amount of the petty cash float. Each time you replenish the cash, remove the receipts, categorize them, and place them in a petty cash receipts envelope.